Ousted Tomkins chief's comeback

ENTREPRENEUR Greg Hutchings today revealed details of a City comeback, saying he was investing £2.14 million in Lupus Capital in return for a 12 1/2% stake and the executive chairmanship.

Hutchings, who built Tomkins into one of Britain's biggest conglomerates before his sudden ousting in 2000 for abusing company perks, will use stock market tiddler Lupus to acquire undervalued businesses.

Shares in Lupus, which have already surged on speculation he was joining, soared 28% today to 12p with an avalanche of 49m shares changing hands.

Hutchings and his fellow executives could be highly rewarded. They are in line to receive up to 190 million shares - equal to more than the current issued share capital of the company - if they hit performance targets.

The 56-year-old was dumped by Tomkins after it emerged company money was used to bankroll the use of personal jets and household expenses. A report by Ernst & Young later found he breached no boardroom rules.

Lupus said it was aware of and had 'satisfied itself' over the circumstances of that departure.

Hutchings said he was looking forward to returning to a public company: 'I've missed the excitement of it all. I've missed the challenge and creativity.'

The media scrutiny and boardroom governance rules of working for a public company would be no problem, he added.

Hutchings is targeting industrial companies and could pounce on anything worth up to several hundredsof millions of pounds. He plans to compete for deals head on with the private equity industry but reckons he has an advantage in being able to contribute better management.

He hopes to attract retail and institutional investors.

'When I left Tomkins, lots of people told me they'd back me if I ever returned to the City. I have had huge support. It's an ideal time to do this. Private equity's had a great run for the past 10 years. But now institutions want something else.'

Hutchings, a protégé of the late Lord White of Hanson fame, built Tomkins into a £4bn business at its height, making everything from bread to lawnmowers.

Compound annual growth in earnings per share was 26% in the 16 years to 2000.